Bitcoin trims losses after core CPI rises less than feared 0.2% in May
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- Bureau of Labor Statistics reported May CPI rose 0.5% month-over-month and 4.2% year-over-year, both matching economist forecasts, with the monthly figure down from April's 0.6% rise
- Core CPI rose just 0.2% in May against forecasts for 0.3% and April's 0.4% increase, while year-over-year core inflation held at 2.9% — the undershoot on the monthly core rate is what drove the relief trade
- Bitcoin was trading around $61,400 after the report, trimming earlier losses but remaining under pressure overall
- CME Fed Watch data showed markets pricing a 98% probability that the Federal Reserve would leave rates unchanged at 350-375 bps at its June 17 meeting, with a 25 bps increase seen as likely by year-end
- Headline CPI year-over-year at 4.2% marked an acceleration from April's 3.8% reading, underscoring that energy and food prices remain the main inflation driver even as core pressures ease
Why it matters: The core CPI undershoot at 0.2% versus 0.3% expected is the actionable data point for traders: it reinforces the 98% market conviction that the Fed will hold rates at its June 17 meeting and tempers expectations of a near-term pivot, directly shaping Bitcoin's near-term price action.
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